Agenda item

a)  Noted the Treasury Management activities for the first half of 2022/23 is set out in the body of this report.

b)  Approved the revised treasury debt maturity profile limit indicator. Para 2.63

c)  Approved the revised limits for investments and service loans. Appendix 2

The Lead Member for Financial Oversight & Council Assets introduced a mid-year update report on treasury management.

The Council was required to prepare an interim and annual treasury management review and the report was an important part of ensuring transparency and informed decision making regarding the Council’s borrowing and investment activity.  The Treasury Management Strategy had been approved by Council on 10^th March 2022.

The Council’s borrowing had reached £760m as at 31 March 2021, around 50% of which was short term temporary borrowing from other local authorities which exposed the Council to significant risks.  The national economic outlook had deteriorated significantly since then but the Council’s strategy was largely unchanged, which was to maximise asset sales to pay down debt and to convert short term debt to longer term debt where further borrowing was required.  It was noted that the Council had liquidated its investments in pooled property funds earlier in the year and the proceeds had been used to support paying off temporary borrowing.  The £10m investment had appreciated in value by more than £3m since 2015 but had been considered the right time to divest of the fund to reduce borrowing.

The Cabinet welcomed the comprehensive report and agreed the recommendations.

Resolved –

(a)  That the Treasury Management activities for the first half of 2022/23 as set out in the body of the report be noted.

(b)  That the revised treasury debt maturity profile limit indicator (para 2.63 of the report) be approved.

(c)  That the revised limits for investments and service loans (Appendix 2 to the report) be approved.